Soy cropping expansion in Paraguay has displaced a considerable number of smallholders from their communities. Based on discussion groups held at peasant and indigenous communities, this article surveys smallholder attitudes towards soy expansion near a nature reserve in eastern Paraguay. Smallholders identify agrochemical pollution and a development model that seeks to eradicate smallholding through the mechanization of the rural landscape as principal problems. In contrast, several campesino (peasant) and indigenous communities have found ways to profit from the industry: some have legally integrated soy into their agricultural practices while others illegally lease their lands to soy patrons. Through interviews, smallholders revealed the relationships between their livelihoods, big soy, and the marijuana trade, giving the sense that engaging in illegal forms of agriculture may help some smallholders resist displacement caused by shifting economies of scale. While these accounts challenge simplistic big-soy/smallholder binaries, they also underscore the deficiencies of weak governance linked to neoliberal economies in developing regions. The article concludes with recommendations on strategies to ameliorate conflicts and engage in sustainable development based on the strengthening of local institutions.

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